Tender No.: 465S/2011/12 - City of Cape Town

Tender No.: 465S/2011/12
1 Definitions
The following definitions shall apply to this schedule:
Schedule 4: Preferencing Schedule
B-BBEE: Broad-based black economic empowerment, as defined in section 1 of the Broad-Based Black Economic
Empowerment Act.
B-BBEE status level of contributor: The B-BBEE status received by a measured entity based on its overall
performance using the relevant scorecard contained in the Codes of Good Practice on Black Economic
Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act.
Black-owned: The percentage of an exempted micro enterprise owned by black people.
Black people: A generic term which means Africans, Coloureds and Indians, as defined in section 1 of the Broad-
Based Black Economic Empowerment Act.
Broad-Based Black Economic Empowerment Act: The Broad-Based Black Economic Empowerment Act, Act 53
of 2003.
Exempted Micro Enterprise (EME): A tenderer/supplier with annual total revenue of R5 million or less, as defined
in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-
Based Black Economic Empowerment Act.
Non-compliant contributor: A company/firm/entity that does not meet the minimum score for a level 8 contributor,
or who is not verified in terms of the applicable Sector Charter.
Prime Contractor: The organisation/tenderer named on the Contract Form, whose offer has been accepted by the
CCT.
Sub-Contract/Contractor: means the primary supplier/successful tenderer's assigning, leasing, making out
work to, or employing another person to support such primary supplier/successful tenderer in the execution of
part of a project in terms of the contract;
Value of the contract: The contract sum (accepted contract amount) less provisional sums, contingencies and
VAT.
2 Conditions associated with the granting of preferences
A company/firm/entity that is granted a preference undertakes to:
1) accept that the number of preference points shall be determined as at the closing date for submission of
tender offers, from the B-BBEE status level certificates submitted to the CCT’s Supplier Management
Office;
2) not sub-contract more than 25% of the value of the contract to sub-contractors that do not have an equal
or higher B-BBEE status level than the Prime Contractor, unless the intended sub-contractors are
exempted micro enterprises that have the capability and ability to execute the sub-contract works, or
unless otherwise declared in terms of Section 5 below;
3) accept the sanctions set out in Section 3 below should condition 2 above be breached, or should the B-
BBEE status level of contribution be found to have been claimed or obtained on a fraudulent basis;
4) accept that, in order to qualify for preference points, it is the responsibility of the tenderer to submit the
relevant certificate(s) (either an original valid B-BBEE status level verification certificate or an Exempted
Micro Enterprise certificate issued by a registered auditor, accounting officer (as contemplated in section
60(4) of the Close Corporation Act, Act 69 of 1984) or an accredited verification agency, or certified copies
thereof) in terms of the Preferential Procurement Regulations, 2011, to Supplier Management Office, 8 th
Floor, Civic Centre, 12 Hertzog Boulevard, Cape Town (Tel 021 400 9242/3/4/5);
5) accept that, further to 4) above, Consortiums/Joint Ventures will qualify for preference points, provided
that the entity submits the relevant certificate/scorecard in terms of the Preferential Procurement
Regulations, 2011. Note that in the case of unincorporated entities, a verified scorecard in the name of
the Consortium/Joint Venture must be submitted with the tender (attached to this schedule);
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